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219 Cal. App. 4th 1086
Cal. Ct. App.
2013
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Background

  • In 2007 Las Vegas Land and Wilkie entered a purchase agreement for commercial property; sale closed after escrow delays.
  • After closing, tenant Levitz filed bankruptcy; Las Vegas Land sued Wilkie for breach and fraud alleging nondisclosure of impending bankruptcy.
  • Wilkie moved for summary judgment in December 2010; Las Vegas Land did not file an opposition (counsel appeared at the hearing).
  • The trial court granted summary judgment for Wilkie and judgment was entered March 18, 2011.
  • Six months later Las Vegas Land moved under Code Civ. Proc. § 473(b) to vacate the summary judgment, arguing attorney error/abandonment and relying on the statute’s mandatory six-month relief when accompanied by an attorney affidavit.
  • The trial court denied relief (noting procedural defects and concluding attorney error did not justify setting aside a summary judgment); Las Vegas Land appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether mandatory provision of § 473(b) applies to summary judgments § 473(b)’s mandatory six-month relief applies to summary judgments entered after a party fails to timely oppose (Avila supports extension) Mandatory provision applies only to clerk-entered defaults, default judgments, or dismissals—not summary judgments Court held § 473(b) mandatory provision does not apply to summary judgments; it is limited to defaults/default judgments/dismissals
Whether client abandonment excuses the statutory requirement of an attorney’s affidavit of fault under § 473(b) Client abandoned by counsel should be excused from producing attorney affidavit and eligible for mandatory relief Statute’s plain text requires an attorney’s sworn affidavit; no exception for abandonment; other remedies exist (discretionary § 473 relief or malpractice/action against attorney) Court held no exception; statute requires attorney affidavit and abandonment does not permit mandatory relief; discretionary relief remains available
Whether procedural defects (failure to file proposed pleading) warranted denial under § 473(b) Proposed pleading later filed; court should allow filing and vacate judgment Motion did not comply with statutory requirement to accompany application with copy of proposed pleading Court noted failure to timely file proposed pleading provided an independent basis to deny mandatory relief
Whether proposed opposition raised triable issues of fact sufficient to defeat summary judgment Proposed opposition would show triable issues and thus relief would change outcome Wilkie argued evidence supported summary judgment and proposed opposition lacked admissible evidence to create triable issues Court observed that even considering the proposed opposition, no admissible evidence raised triable issues; judgment would have been granted on merits

Key Cases Cited

  • English v. IKON Business Solutions, Inc., 94 Cal.App.4th 130 (interpretation that § 473(b) mandatory relief applies only to defaults/default judgments/dismissals)
  • Avila v. Chua, 57 Cal.App.4th 860 (argued mandatory § 473(b) relief should apply where summary-judgment dismissal is analogous to default)
  • Huh v. Wang, 158 Cal.App.4th 1406 (recent authority rejecting extension of mandatory § 473(b) to summary judgment)
  • Prieto v. Loyola Marymount Univ., 132 Cal.App.4th 290 (mandatory provision predicated on clerk-entered default; not applicable to late/no opposition to summary judgment)
  • Yeap v. Leake, 60 Cal.App.4th 591 (dissent highlighting limits of mandatory § 473(b) and cautioning against broad expansion)
  • Henderson v. Pacific Gas & Electric Co., 187 Cal.App.4th 215 (statutory construction standard; de novo review)
Read the full case

Case Details

Case Name: Las Vegas Land & Development Co. v. Wilkie Way, LLC
Court Name: California Court of Appeal
Date Published: Sep 19, 2013
Citations: 219 Cal. App. 4th 1086; 162 Cal. Rptr. 3d 391; 2013 WL 5278215; 2013 Cal. App. LEXIS 749; B238921
Docket Number: B238921
Court Abbreviation: Cal. Ct. App.
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